15-72 a Possible Reason for the High Systematic Risk of DSR

question 57

Multiple Choice

15-72 A possible reason for the high systematic risk of DSR is

• A)the tendency of world commodity prices to reflect nonsimilar economic conditions.
• B)the sensitivity of this ratio to rising nominal and real interest rates in the developed countries.
• C)the tendency of prices and world demands for commodities to reflect simultaneously economic conditions.
• D)the discretionary nature of money supply growth for LDC governments.
• E)different demands for imports,and wide differences in the scale of vital imports across LDCs.